Charger Metals has reduced its FY2026 loss and secured $3.75 million from the sale of Bynoe, giving the lithium explorer more room to advance its Lake Johnston assets. The company’s Medcalf resource now stands at 10.6Mt, although further drilling and funding will be needed to test its economic potential.
- FY2026 net loss narrowed to $1.392 million
- $3.75 million Bynoe cash proceeds received after year end
- Medcalf resource increased to 10.6Mt at 1.0% Li2O
- 10,000m drilling programme and Medcalf scoping study underway
- Lake Johnston retained at 100% after Rio Tinto farm-in termination
Bynoe sale strengthens Charger’s funding position
Charger Metals NL (ASX:CHR) ended FY2026 with just $1.34 million in cash, but the balance sheet was materially different by the time its annual report was signed. The sale of the Bynoe Lithium Project to Core Lithium was completed on 17 July, delivering $3.75 million in cash and giving Charger a larger financial base from which to pursue its Lake Johnston strategy.
The Bynoe transaction could ultimately be worth up to $14.75 million, including a $1 million payment if an 8Mt resource grading at least 1.0% Li2O is delineated on the tenement and a 1% gross revenue royalty capped at $10 million. Those additional amounts remain contingent and have not been recognised as assets in the accounts, leaving the upfront cash as the only realised consideration so far.
Medcalf resource reaches 10.6Mt
The centrepiece of the report is the Medcalf lithium deposit, where Charger reported an Inferred Mineral Resource of 10.6Mt at 1.0% Li2O, containing 106,000 tonnes of contained lithium oxide. That represents a substantial increase from the 8.3Mt resource reported in August 2025. A separate tantalum resource of 2.2Mt at 132 parts per million Ta2O5 was also confirmed.
Charger says initial metallurgical work lifted the lithium grade from 1.01% to 1.32% through crushing, screening and ore sorting, with 94.9% recovery and a reduction in iron content. The company has committed to another 10,000 metres of infill and extensional drilling, while a scoping study and permitting work have commenced. The nearby Medcalf West target adds a conceptual 3Mt to 5Mt at 1.0% to 1.4% Li2O, but it is not yet a Mineral Resource and remains subject to the usual exploration uncertainty.
Lake Johnston becomes the sole strategic focus
Charger also regained full control of Lake Johnston after terminating its farm-in agreement with Rio Tinto Exploration in December 2025. The company retains 100% of its principal lithium project and says the Bynoe proceeds will fund drilling, permitting, mining studies and processing studies at Medcalf.
That concentration brings both control and exposure. Charger is no longer sharing future exploration decisions at Lake Johnston, but it also remains an exploration-stage company with no product revenue, a $1.04 million operating cash outflow during the year and minimum tenement expenditure commitments of $1.39 million across the coming five years. The directors judged the company a going concern partly because of the post-year-end Bynoe proceeds, discretionary spending controls and the possibility of raising further capital.
Loss narrows as remuneration scrutiny remains
Charger’s net loss narrowed to $1.392 million from $2.253 million, although the result included a $451,750 non-cash impairment linked to classifying Bynoe as held for sale. Cash used in operations increased to $1.045 million from $947,182, while the company raised $1.35 million through a placement and a further $854,175 through a call on partly paid shares.
The report also records a first strike on the 2025 remuneration report, with 45.53% of votes cast against its adoption. Shareholders separately approved Managing Director and CEO Bryan Dixon’s performance rights by 89.64% and potential termination benefits by 89.47%. Dixon still holds 2.63 million performance rights, with future vesting tied to share price and market capitalisation hurdles. The next test is whether drilling and studies can convert the improved resource story into evidence of a viable development path.
Bottom Line?
The Bynoe cash gives Charger a clearer runway, but the investment case now rests heavily on what the next 10,000 metres of drilling and the Medcalf scoping study reveal.
Questions in the middle?
- Can further drilling convert Medcalf’s Inferred Resource into a higher-confidence estimate?
- Will the scoping study demonstrate economics strong enough to justify development funding?
- How long will the Bynoe proceeds last before Charger needs additional capital?